CREDAI President(Western U.P) on a Year’s Timeline Extension to Builders by UPRERA

Mr. Amit Modi, President (Elect) CREDAI Western UP & Director ABA Corp on the topic of Timeline extension to builders by UPRERA for more than a year. 

Q1. What were the primary factors considered for giving a timeline extension to builders that is more than a year?

The primary factors that were considered for making such a decision were an almost three-month halt that construction sites had to face, the exodus of labour migration and the disruption of entire supply chain management.

Real estate functions with the support of around 300 other industries like cement, glass, steel, iron, fittings, furnishings etc.

During the lockdown, production came down to null, and now that we have unlocked it will take at least 6 months to get back on track in terms of production, transportation, and timely deliveries of the goods to sites.

Therefore, to keep the buyer’s trust intact, the decision was taken. 

Q2. How will this change buyer’s interest towards Ready to move in homes?

The decision to purchase a home is completely dependent on the need of the buyer and his financial health.

For buyers with budget constraints will always opt for under-construction projects, which come with flexible payment plans.

Before entering into any legal agreement for under-construction properties, buyers must be wise enough to study about the developer involved and his history in delivering such projects.

RTMI homes at the time of possession will anyway be on the higher price point when compared to under-construction ones, and would not require such detailed research to be conducted by the end-users. They will get what they see. 

Q3. Can we expect any relief measures to be introduced which are buyer- centric?

There is significant attention being paid to provide relief for the buyers, starting with home loan interest rates are already at their lowest, and moratorium has been introduced for existing owners with home loans.

Price correction has also been a part of the real estate market, as there has been no hike in prices for more than a year now. All these factors combined together work best for a genuine homebuyer to invest in property.

We also think that the government should take initiative for further increasing the rebate of interest on home loans. This will encourage the first time homebuyers and fence-sitters.   

Q4. Will this extension provide new opportunities for industrialization in Noida, Gr. Noida and Yamuna region?

A proactive industrial drive by the UP State government is already in place to get more industries established in Noida, Gr. Noida and Yamuna regions, and we certainly expect to see a lot of big-ticket industrial announcements in the coming month mainly in manufacturing, IT/ITes, sectors.

Noida Authority was also involved in starting two industrial plotting schemes that were a big hit during the lockdown.

Both in Noida and Yamuna expressway areas, some 119 industrial plots worth Rs. 640 crore are slated to be allotted by respective authorities. 

In the next five years, these deals would lead to investments of at least 2,640 crores and generation of more than 10,000 jobs.

Samsung is setting up India’s first smartphone display manufacturing unit in India with investments of more than Rs. 3500 crore rupees. Real Me India is awaiting the nod to open its factory at Greater Noida.

The three regions in UP are expected to become the hubs of mobile production and manufacturing with only smartphone production of around $57 billion, accessories and chip industries will further add to this figure.

In the coming 5 years, the component and sub-assembly industry of at least $20-25 billion is expected.   

Q5. The power to change land use has been approved, does that mean builders have a free hand in converting a land purchased for housing to industrial use. What kind of shift will be observed in homebuyer’s interest?

The shift will completely depend on the location of the land; builders cannot just convert land at a central location in the city to industrial use.

A series of major government and environment clearances, licenses are to be approved before declaring land as an industry purpose plot.

The peripheral areas where there is less interest in homebuyers, it can be put into industrial use, taking care of the allocated land’s location prospects.